Chinese PC maker Lenovo soars 9.6% after saying it will list shares on Shanghai’s Nasdaq-style board

Chinese PC maker Lenovo soars 9.6% after saying it will list shares on Shanghai’s Nasdaq-style board
Photo taken on Jan. 8, 2020 shows the world’s first 5G personal computer launched by Lenovo during the 2020 Consumer Electronics Show in Las Vegas, the United States.

Wu Xiaoling | Xinhua News Agency | Getty Images

GUANGZHOU, China — Shares of Hong Kong-listed Lenovo closed over 9% higher on Wednesday after the Chinese PC maker said it plans to list stocks in Shanghai.

Lenovo shares closed at 8.83 Hong Kong dollars paring earlier gains when the stock went as high as 9.42 Hong Kong dollars.

On Tuesday, Lenovo said it had filed a request to the Hong Kong stock exchange, asking them to issue so-called Chinese depositary receipts (CDRs) on the Science and Technology Innovation Board or Star Market of the Shanghai Stock Exchange.

CDRs allow mainland Chinese investors to buy equity in non-Chinese incorporated companies, and are similar to American depositary receipts (ADRs) which allow stocks of non-U.S. company shares to trade on American exchanges. They are technically not shares but represent equity interest in a company.

Shanghai’s Star Market launched in 2019 with the aim of attracting innovative technology companies through more relaxed listing rules than other stock boards. In December, the Star Market welcomed its 200th company.

Lenovo said it intends to issue new ordinary shares that would represent no more than 10% of the total enlarged number of ordinary shares of the company.  

The proceeds from the issuance will be used for the company’s research and development of new technologies, products and solutions, strategic investments in related sectors, and replenishment of its working capital, Lenovo said in a statement.

“With Lenovo’s strong global presence and heritage in China, we are confident that this offering will help further realize Lenovo’s value by leveraging the booming China capital market at the same time enable investors in China to invest more easily,” Yuanqing Yang, Lenovo Chairman and CEO, said in the statement.

“The offering will allow us to make greater investments in technologies and innovations, and better drive digital and intelligent transformation across industries.”

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us news@climaxradio.co.uk or newstories@climaxnewsroom.com and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.

Leave a Reply

Your email address will not be published. Required fields are marked *